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Reuters Breakingviews: FirstGroup hits debt brick wall

Monday, May 20, 2013 - 03:50

May 20 - The rail and bus operator is raising £615 million to stave off a ratings downgrade. Debt may be cheap, but too much of it is holding FirstGroup back, says Breakingviews.

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So a couple of buy -- to cope with stories to get our teeth into this morning breaking news first group tries to avoid a ratings downgrade for the 615. Million. Pound that's a billion dollar rights issue and it won't be the only company to try this assistance -- us through what's happening. We've got another big rights issue in Europe today first group which is Brennan also operates through -- ground. Buses in the states. Suddenly come our way of -- -- suggesting that in stunning as it peninsula. Cache -- now it's that's the the the investment community. Has been concerned for awhile about. For -- -- she hadn't been hoping for some kind of mix solve. All pharmacy restructuring asset disposals and then -- today to be with. With the European markets is touching -- -- -- everything whole life. A victory produced by Kosovo will announce amendments to. The -- -- -- say hello this is say that put them woeful offensive reliance on the strength of the market this whole. There inducted this program -- this -- -- maybe a little bit low lights all on other strategic moves like your that Felton. -- restaurant. They they they they they -- -- days of racing town and -- has one of the reasons that Thomas. Jones gone. I was going to that was today and that's the day we know any ideas about. What has been a rom often go with the merit -- the quad -- while but clearly whenever you aren't going to us those are asking for money what do you do I use. If it's if it's at a defensive move which this is they're not coming from position of strength. The this custom is is often that you have to so scouts that. Helpful that there is management changed a mean old thing you need to save that you've done everything else possible in the raising equity is the law drizzle it's. And you could say that in first whose -- they they really have go to this from my. We would respect the famous are thought about the strength of the of the debt markets around him resign and so three and with the refinance or have difficulty. A move for a first group had. But it's up to sort of brick war. Where this deposition that its ability through and fast its ability to that the pursuit of peace conference program it really have many choices about the thoughts of. And I don't Italian recipes and it makes a good point when he says with the equity markets. Whether at all. -- -- and Heidi like you was he more many more -- geared. The corporates. Makings of an. Delicate and made it made sense because you really column buying homes that markets being afraid apple has that been for so long for continuing. If you are. And they repeated company UK. He you can keep on pushing out the maturity is that you'll. You have that. In very faithful. Rates but there comes a point where you do you have to say okay. Is this really the right is to strike apple -- me. You know it's not the that that moms are going to be so differently for a it's his constraining my ability to run my business. From. It's is that the window is California. Terrific you know while the C -- this is this is that this is that they will focus street it doesn't shareholder approval. You know -- is being held -- that right now thing that is big disparity and I have to struggle -- very heavily diluted. Throughout the -- in my rookie right okay. If you wanna watch our US breaking news show every day twelve birdies in 1630 GMT I'm axle problems sources.